Does living in in-laws disqualify you from using your Lifetime ISA to buy a house?

I and my wife (we're American) are considering investing in property in the UK for our daughter who lives there with her British husband. Rather than letting them continue to pay rent, we thought investing in a house for them now would be a wise use cash we recently received from downsizing and that we have otherwise have sitting around not doing much. However, our son-in-law has a lifetime ISA that he initially opened as a way of contributing to their own first home.

If the two of them live in a house that we own, does anyone know if that would that invalidate their ability to use the Lifetime ISA for their own home purchase in four or five years?

Comments

  • eskbanker
    eskbanker Posts: 30,401
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    Living in a house owned by someone else doesn't invalidate first-time buyer status for LISA purposes.
  • gwynlas
    gwynlas Posts: 1,652
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    I would be very aware of possible marriage break up if you intend to purchase house for your daughter and son in law. You need to take advice before gifting it to them or renting it to them if they aare ever likely to lose their jobs.
  • xylophone
    xylophone Posts: 44,140
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    Had you considered gifting your daughter a sum sufficient (when combined with the LISA), for the deposit on a property? She and her husband could then take out a mortgage of their own?
  • epm-84
    epm-84 Posts: 2,723
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    I don't think the Lifetime ISA terms is something you need to worry about. Although, as you'll technically be a landlord for your son in law, you should get professional advice about your proposed arrangement.
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